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Oscarsson was born, along with his twin brother Björn, on 28 January 1927 on Kungsholmen, Stockholm, to parents Einar Oscarsson, an engineer, and Therèse, née Küppers. The twins had two elder siblings. Their mother, who was German, died of cancer in 1933.[2]

A fire started in the house of Per Oscarsson and his wife Kia Östling on the night of 30–31 December 2010. On 31 December, a relative found the house burned to the ground with only the foundations and chimney remaining.[5] Oscarsson had not been heard from since the fire. A body was discovered in the ruins of the house on 2 January 2011, and was presumed by police to be either the body of Oscarsson or that of his wife.[6] A second body was discovered on 3 January, which increased the possibility that both Oscarsson and his wife had perished in the fire.[7] On 5 January, the deaths of Oscarsson and his wife were confirmed through dental records by Swedish police.[8][9] Oscarsson died four weeks before his 84th birthday.